Bill Text: IA SSB3116 | 2019-2020 | 88th General Assembly | Introduced

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Bill Title: A bill for an act relating to state and local revenue and finances including modifying individual income taxes, sales and use taxes, water service tax, and certain tax credits and provisions relating to county juvenile court expenses and mental health region funding, making appropriations, and including effective date and applicability provisions.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2020-03-03 - Subcommittee Meeting: 03/04/2020 4:00PM RM 116. [SSB3116 Detail]

Download: Iowa-2019-SSB3116-Introduced.html

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Senate Study Bill 3116 - Introduced
SENATE/HOUSE FILE _____
BY (PROPOSED GOVERNOR BILL)
A BILL FOR
An Act relating to state and local revenue and finances
including modifying individual income taxes, sales and
use taxes, water service tax, and certain tax credits and
provisions relating to county juvenile court expenses and
mental health region funding, making appropriations, and
including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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DIVISION I
INDIVIDUAL INCOME TAXES BEGINNING 2021 TAX YEAR
Section 1. Section 422.5A, Code 2020, is amended by striking
the section and inserting in lieu thereof the following:
422.5A Tax rates.
The tax imposed in section 422.5 shall be calculated at the
following rates:
1. On all taxable income from 0 through $3,364, the rate of
0.30 percent.
2. On all taxable income exceeding $3,364 but not exceeding
$6,728, the rate of 2.00 percent.
3. On all taxable income exceeding $6,728 but not exceeding
$15,138, the rate of 3.73 percent.
4. On all taxable income exceeding $15,138 but not exceeding
$25,230, the rate of 5.07 percent.
5. On all taxable income exceeding $25,230 but not exceeding
$33,640, the rate of 5.36 percent.
6. On all taxable income exceeding $33,640 but not exceeding
$50,460, the rate of 5.63 percent.
7. On all taxable income exceeding $50,460 but not exceeding
$75,690, the rate of 6.97 percent.
8. On all taxable income exceeding $75,690, the rate of 7.48
percent.
Sec. 2. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2021.
Sec. 3. APPLICABILITY. This division of this Act applies
to tax years beginning on or after January 1, 2021, but before
the contingent effective date in 2018 Iowa Acts, chapter 1161,
section 133.
DIVISION II
CONTINGENT EFFECTIVE DATE IN 2018 IOWA ACTS —— NET GENERAL FUND
REVENUES CALCULATION
Sec. 4. 2018 Iowa Acts, chapter 1161, section 133,
subsection 1, unnumbered paragraph 1, is amended to read as
follows:
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This division of this Act takes effect on January 1, 2023, if
both of the following conditions are the following condition
is satisfied:
Sec. 5. 2018 Iowa Acts, chapter 1161, section 133,
subsection 1, paragraph b, is amended by striking the
paragraph.
Sec. 6. 2018 Iowa Acts, chapter 1161, section 133,
subsection 2, unnumbered paragraph 1, is amended to read as
follows:
If the provisions of subsection 1 are is not satisfied and
this division of this Act does not take effect on January 1,
2023, then this division of this Act shall take effect on
January 1 following the first fiscal year for which both of the
following conditions are the following condition is satisfied:
Sec. 7. 2018 Iowa Acts, chapter 1161, section 133,
subsection 2, paragraph b, is amended by striking the
paragraph.
DIVISION III
FUTURE CONTINGENT INDIVIDUAL INCOME TAXES BEGINNING IN 2023 TAX
YEAR
Sec. 8. 2018 Iowa Acts, chapter 1161, section 107, is
amended to read as follows:
SEC. 107. Section 422.5A , as enacted in this Act, is amended
by striking the section and inserting in lieu thereof the
following:
422.5A Tax rates.
1. The tax imposed in section 422.5 shall be calculated
at the following rates in the case of a married couple filing
jointly:
a. On all taxable income from 0 through $12,000, the rate of
4.40 4.0 percent.
b. On all taxable income exceeding $12,000 but not exceeding
$60,000, the rate of 4.82 4.45 percent.
c. On all taxable income exceeding $60,000 but not exceeding
$150,000, the rate of 5.70 4.99 percent.
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d. On all taxable income exceeding $150,000, the rate of
6.50 5.5 percent.
2. The tax imposed in section 422.5 shall be calculated at
the following rates in the case of any taxpayer other than a
married couple filing jointly:
a. On all taxable income from 0 through $6,000, the rate of
4.40 4.0 percent.
b. On all taxable income exceeding $6,000 but not exceeding
$30,000, the rate of 4.82 4.45 percent.
c. On all taxable income exceeding $30,000 but not exceeding
$75,000, the rate of 5.70 4.99 percent.
d. On all taxable income exceeding $75,000, the rate of 6.50
5.5 percent.
DIVISION IV
CHILD AND DEPENDENT CARE AND EARLY CHILDHOOD TAX CREDITS
Sec. 9. Section 422.12C, subsection 1, paragraphs f and g,
Code 2020, are amended to read as follows:
f. For a taxpayer with net income of forty thousand dollars
or more but less than forty-five ninety thousand dollars,
thirty percent.
g. For a taxpayer with net income of forty-five ninety
thousand dollars or more, zero percent.
Sec. 10. Section 422.12C, subsection 2, paragraph a, Code
2020, is amended to read as follows:
a. The taxes imposed under this division , less the amounts
of nonrefundable credits allowed under this division , may be
reduced by an early childhood development tax credit equal to
twenty-five percent of the first one thousand dollars which
the taxpayer has paid to others for each dependent, as defined
in the Internal Revenue Code, ages three through five for
early childhood development expenses. In determining the
amount of early childhood development expenses for the tax year
beginning in the 2006 calendar year only, such expenses paid
during November and December of the previous tax year shall
be considered paid in the tax year for which the tax credit
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is claimed. This credit is available to a taxpayer whose net
income is less than forty-five ninety thousand dollars. If the
early childhood development tax credit is claimed for a tax
year, the taxpayer and the taxpayer’s spouse shall not claim
the child and dependent care credit under subsection 1 .
Sec. 11. APPLICABILITY. This division of this Act applies
to tax years beginning on or after January 1, 2021.
DIVISION V
PRECEPTOR TAX CREDIT
Sec. 12. NEW SECTION . 135.39E Preceptor tax credit.
1. As used in this section, unless the context otherwise
requires:
a. “Preceptor” means a licensed practicing physician who
provides on-site education to a medical student or resident at
a hospital or medical clinic in a rural area.
b. “Rural area” means any county in the state other than
the ten largest counties according to the most recent federal
decennial census.
2. An eligible preceptor may apply to the department for
tax credits under this section. The tax credit may be applied
against income tax imposed under chapter 422, division II. The
amount of the credit equals one thousand dollars per medical
student or resident supervised by the preceptor up to a maximum
of ten thousand dollars per year.
3. Any credit in excess of the tax liability is
nonrefundable and shall not be credited to the tax liability
for any following year.
4. The credits shall be issued by the department on a
first-come, first-served basis until the maximum amount of the
tax credits authorized in subsection 5 is reached.
5. The cumulative value of tax credits annually claimed
shall not exceed one hundred thousand dollars.
6. The department in collaboration with the department of
revenue shall develop a system for the application, review, and
authorization of tax credits issued pursuant to this section.
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7. The department and the department of revenue shall each
adopt rules pursuant to chapter 17A to jointly administer
this section, including establishing the number of hours a
preceptor must supervise a medical student or resident in order
to qualify for the tax credit.
Sec. 13. NEW SECTION . 422.12O Preceptor tax credit.
The taxes imposed under this division, less the credits
allowed under section 422.12, shall be reduced by the preceptor
tax credit allowed under section 135.39E.
Sec. 14. APPLICABILITY. This division of this Act applies
to tax years beginning on or after January 1, 2021.
DIVISION VI
SALES AND USE TAXES
Sec. 15. Section 423.2, subsection 1, unnumbered paragraph
1, Code 2020, is amended to read as follows:
There is imposed a tax of six percent at the rate specified
in subsection 12 upon the sales price of all sales of tangible
personal property, consisting of goods, wares, or merchandise,
sold at retail in the state to consumers or users except as
otherwise provided in this subchapter .
Sec. 16. Section 423.2, subsections 2 and 3, Code 2020, are
amended to read as follows:
2. A tax of six percent at the rate specified in subsection
12 is imposed upon the sales price of the sale or furnishing
of gas, electricity, water, heat, pay television service, and
communication service, including the sales price from such
sales by any municipal corporation or joint water utility
furnishing gas, electricity, water, heat, pay television
service, and communication service to the public in its
proprietary capacity, except as otherwise provided in this
subchapter , when sold at retail in the state to consumers or
users.
3. A tax of six percent at the rate specified in subsection
12 is imposed upon the sales price of all sales of tickets
or admissions to places of amusement, fairs, and athletic
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events except those of elementary and secondary educational
institutions. A tax of six percent at the rate specified in
subsection 12 is imposed on the sales price of an entry fee or
like charge imposed solely for the privilege of participating
in an activity at a place of amusement, fair, or athletic event
unless the sales price of tickets or admissions charges for
observing the same activity are taxable under this subchapter .
A tax of six percent at the rate specified in subsection 12
is imposed upon that part of private club membership fees or
charges paid for the privilege of participating in any athletic
sports provided club members.
Sec. 17. Section 423.2, subsection 4, paragraph a, Code
2020, is amended to read as follows:
a. A tax of six percent at the rate specified in subsection
12 is imposed upon the sales price derived from the operation
of all forms of amusement devices and games of skill, games of
chance, raffles, and bingo games as defined in chapter 99B , and
card game tournaments conducted under section 99B.27 , that are
operated or conducted within the state, the tax to be collected
from the operator in the same manner as for the collection of
taxes upon the sales price of tickets or admission as provided
in this section . Nothing in this subsection shall legalize any
games of skill or chance or slot-operated devices which are now
prohibited by law.
Sec. 18. Section 423.2, subsection 5, Code 2020, is amended
to read as follows:
5. There is imposed a tax of six percent at the rate
specified in subsection 12 upon the sales price from the
furnishing of services as defined in section 423.1 .
Sec. 19. Section 423.2, subsection 7, paragraph a,
unnumbered paragraph 1, Code 2020, is amended to read as
follows:
A tax of six percent at the rate specified in subsection 12
is imposed upon the sales price from the sales, furnishing, or
service of solid waste collection and disposal service.
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Sec. 20. Section 423.2, subsection 8, paragraph a, Code
2020, is amended to read as follows:
a. A tax of six percent at the rate specified in subsection
12 is imposed on the sales price from sales of bundled
transactions. For the purposes of this subsection , a “bundled
transaction” is the retail sale of two or more distinct and
identifiable products, except real property and services to
real property, which are sold for one nonitemized price. A
“bundled transaction” does not include the sale of any products
in which the sales price varies, or is negotiable, based on
the selection by the purchaser of the products included in the
transaction.
Sec. 21. Section 423.2, subsection 9, Code 2020, is amended
to read as follows:
9. A tax of six percent at the rate specified in
subsection 12 is imposed upon the sales price from any mobile
telecommunications service, including all paging services,
that this state is allowed to tax pursuant to the provisions
of the federal Mobile Telecommunications Sourcing Act, Pub.
L. No. 106-252, 4 U.S.C. §116 et seq. For purposes of this
subsection , taxes on mobile telecommunications service, as
defined under the federal Mobile Telecommunications Sourcing
Act that are deemed to be provided by the customer’s home
service provider, shall be paid to the taxing jurisdiction
whose territorial limits encompass the customer’s place of
primary use, regardless of where the mobile telecommunications
service originates, terminates, or passes through and
shall in all other respects be taxed in conformity with
the federal Mobile Telecommunications Sourcing Act. All
other provisions of the federal Mobile Telecommunications
Sourcing Act are adopted by the state of Iowa and incorporated
into this subsection by reference. With respect to mobile
telecommunications service under the federal Mobile
Telecommunications Sourcing Act, the director shall, if
requested, enter into agreements consistent with the provisions
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of the federal Act.
Sec. 22. Section 423.2, subsection 10, paragraph a, Code
2020, is amended to read as follows:
a. A tax of six percent at the rate specified in subsection
12 is imposed on the sales price of specified digital products
sold at retail in the state. The tax applies whether the
purchaser obtains permanent use or less than permanent use of
the specified digital product, whether the sale is conditioned
or not conditioned upon continued payment from the purchaser,
and whether the sale is on a subscription basis or is not on a
subscription basis.
Sec. 23. Section 423.2, subsection 12, Code 2020, is amended
by striking the subsection and inserting in lieu thereof the
following:
12. a. For the period beginning January 1, 2021, and ending
December 31, 2051, the sales tax rate is seven percent.
b. Beginning January 1, 2051, the sales tax rate is six
percent.
Sec. 24. Section 423.2A, subsection 2, Code 2020, is amended
by adding the following new paragraph:
NEW PARAGRAPH . 0b. Transfer one-seventh of the remaining
revenues to the secure an advanced vision for education fund
created in section 423F.2. This paragraph “0b” is repealed
January 1, 2051.
Sec. 25. Section 423.2A, subsection 2, paragraph b, Code
2020, is amended to read as follows:
b. Transfer from the remaining revenues the amounts required
under Article VII, section 10, of the Constitution of the State
of Iowa to the natural resources and outdoor recreation trust
fund created in section 461.31 , if applicable .
Sec. 26. Section 423.2A, subsection 2, paragraph c, Code
2020, is amended by striking the paragraph.
Sec. 27. Section 423.2A, subsection 2, paragraph d, Code
2020, is amended to read as follows:
d. Transfer to the baseball and softball complex sales tax
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rebate fund that portion of the sales tax receipts described
in subsection 1 , paragraph “b” , remaining after the transfers
required under paragraphs “a” , “0b” , and “b” , and “c” of this
subsection 2 . This paragraph is repealed thirty days following
the date on which five million dollars in total rebates have
been provided under section 423.4, subsection 10 .
Sec. 28. Section 423.5, subsection 1, unnumbered paragraph
1, Code 2020, is amended to read as follows:
Except as provided in paragraph “c” , an excise tax at the
rate of six percent specified in subsection 4 of the purchase
price or installed purchase price is imposed on the following:
Sec. 29. Section 423.5, subsection 4, Code 2020, is amended
by striking the subsection and inserting in lieu thereof the
following:
4. a. For the period beginning January 1, 2021, and ending
December 31, 2051, the use tax rate is seven percent.
b. Beginning January 1, 2051, the use tax rate is six
percent.
Sec. 30. Section 423.43, subsection 1, paragraph b, Code
2020, is amended to read as follows:
b. Subsequent to the deposit into the general fund of
the state and after the transfer of such revenues collected
under chapter 423B , the department shall transfer one-sixth
one-seventh of such remaining revenues to the secure an
advanced vision for education fund created in section 423F.2 .
This paragraph is repealed January 1, 2051.
Sec. 31. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2021.
DIVISION VII
WATER SERVICE TAX REPEAL
Sec. 32. Section 421.71, subsection 3, Code 2020, is amended
to read as follows:
3. Private cause of action immunity for overpayment of
certain taxes.
a. A taxpayer, or any person required to collect taxes
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imposed under chapters 423 , 423A , 423B , 423C , and 423D , and
chapter 423G , Code 2020, shall be immune from any private cause
of action arising from or related to the overpayment of taxes
imposed under chapters 423 , 423A , 423B , 423C , and 423D , and
chapter 423G , Code 2020, that are collected and remitted to the
department.
b. Nothing in this subsection shall apply to or otherwise
limit any of the following:
(1) Any claim, action, mandate, power, remedy, or
discretion of the department, or an agent or designee of the
department.
(2) A taxpayer’s right to seek a refund from the department
related to taxes imposed under chapters 423 , 423A , 423B , 423C ,
and 423D , and chapter 423G , and Code 2020, that are collected
from or paid by the taxpayer.
Sec. 33. Section 423G.7, Code 2020, is amended by striking
the section and inserting in lieu thereof the following:
423G.7 Repeal.
This chapter is repealed January 1, 2021.
Sec. 34. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2021.
DIVISION VIII
SALES AND USE TAX EXEMPTIONS
Sec. 35. Section 423.3, subsection 68, paragraph c,
subparagraph (1), subparagraph division (a), Code 2020, is
amended to read as follows:
(a) “Clothing” includes but is not limited to the
following: aprons, household and shop; athletic supporters;
baby receiving blankets; bathing suits and caps; beach capes
and coats; belts and suspenders; boots; coats and jackets;
costumes; diapers (children and adults, including disposable
diapers); earmuffs; footlets; formal wear; garters and garter
belts; girdles; gloves and mittens for general use; hats
and caps; hosiery; insoles for shoes; lab coats; neckties;
overshoes; pantyhose; rainwear; rubber pants; sandals;
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scarves; shoes and shoelaces; slippers; sneakers; socks and
stockings; steel-toed shoes; underwear; uniforms, athletic and
nonathletic; and wedding apparel.
Sec. 36. Section 423.3, Code 2019, is amended by adding the
following new subsections:
NEW SUBSECTION . 107. The sales price from the sale of
feminine hygiene products. For purposes of this subsection,
“feminine hygiene products” means sanitary napkins, tampons, or
other similar items used for feminine hygiene.
NEW SUBSECTION . 108. The sales price from the sale of a
child or adult diaper, whether cloth or disposable.
Sec. 37. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2021.
DIVISION IX
JUVENILE COURT EXPENSES
Sec. 38. Section 232.141, subsection 2, unnumbered
paragraph 1, Code 2020, is amended to read as follows:
All of the following juvenile court expenses are a charge
upon the county in which the proceedings are held, to the
extent provided in subsection 3 shall be paid from the indigent
defense fund established in section 815.11 in accordance with
this chapter and chapters 13B and 815 :
Sec. 39. Section 232.141, subsections 3 and 7, Code 2020,
are amended by striking the subsections.
Sec. 40. Section 602.1302, subsection 4, Code 2020, is
amended to read as follows:
4. The judicial branch shall reimburse counties for the
costs of witness and mileage fees and for attorney fees to the
extent paid pursuant to section 232.141, subsection 1 .
Sec. 41. Section 602.1303, subsection 4, Code 2020, is
amended to read as follows:
4. A county shall pay the costs incurred in connection with
the administration of juvenile justice to the extent provided
under section 232.141 .
Sec. 42. Section 815.11, Code 2020, is amended to read as
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follows:
815.11 Appropriations for indigent defense —— fund created.
Costs incurred for legal representation by a court-appointed
attorney under chapter 229A , 665 , 822 , or 908 , or section
232.141, subsection 3 , paragraph “d” 2 , or section 598.23A ,
600A.6B , 814.9 , 814.10 , 814.11 , 815.4 , 815.7 , or 815.10 on
behalf of an indigent shall be paid from moneys appropriated
by the general assembly to the office of the state public
defender in the department of inspections and appeals and
deposited in an account to be known as the indigent defense
fund. Costs incurred representing an indigent defendant in
a contempt action, or representing an indigent juvenile in a
juvenile court proceeding, are also payable from the fund.
However, costs incurred in any administrative proceeding or in
any other proceeding under this chapter or chapter 598 , 600 ,
600A , 633 , 633A , 814 , or 915 or other provisions of the Code or
administrative rules are not payable from the fund.
DIVISION X
MENTAL HEALTH REGION FUNDING
Sec. 43. Section 225C.4, subsection 1, paragraph i, Code
2020, is amended by striking the paragraph.
Sec. 44. Section 225C.7A, Code 2020, is amended by striking
the section and inserting in lieu thereof the following:
225C.7A Mental health and disability services state
supplement fund.
1. A mental health and disability services state supplement
fund is created in the office of the treasurer of state under
the authority of the department. The fund shall be separate
from the general fund of the state and the balance in the fund
shall not be considered part of the balance of the general fund
of the state. Moneys in the fund include appropriations made
to the fund, and other moneys deposited into the fund. Moneys
in the fund shall be used solely for purposes of making state
supplement payments under this section. For each fiscal year
beginning on or after July 1, 2020, the moneys available in a
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fiscal year in the mental health and disability services state
supplement fund are appropriated to the department and shall
be distributed to each county on a per capita basis calculated
using each county’s population, as defined in section 331.424A,
for that fiscal year.
2. For a county to be eligible to receive a state supplement
payment under this section, the county, or the county’s mental
health and disability services region on behalf of the county,
shall submit a core services domain report to the department
on or before a date established by the department by rule.
The contents of the report, to be determined by rule of the
department in consultation with the commission, shall enable
the department to evaluate, along with other information
available to the department, including annual reports and
annual service and budget plans submitted under section
331.393, whether each county or the county’s mental health
and disability services region is in substantial compliance
with the required core service domains under section 331.397,
subsection 4, and section 331.397A, subsection 4. On or before
a date established by the department by rule, the department
shall review all core service domain reports and notify each
county of the results of the review. If the county is not in
substantial compliance with the required core service domains
under section 331.397, subsection 4, and section 331.397A,
subsection 4, and the county or the county’s region has
failed to comply with the corrective action plan under section
331.389, subsection 5, paragraph “a” , the department shall
reduce the amount of the state supplement payment by an amount
commensurate with the level of noncompliance, not to exceed
fifteen percent of the state supplement payment amount pursuant
to section 331.389, subsection 5, paragraph “b” .
3. State supplement payments received by a county shall be
deposited in the county services fund under section 331.424A
and used solely for the purposes authorized in section
331.424A, subsection 3.
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Sec. 45. Section 249N.8, subsection 1, Code 2020, is amended
to read as follows:
1. Biennially, a report of the results of a review, by
county and region, of mental health services previously funded
through taxes levied by counties pursuant to section 331.424A ,
that are funded during the reporting period under the Iowa
health and wellness plan.
Sec. 46. Section 331.389, subsection 5, paragraph b, Code
2020, is amended to read as follows:
b. Reduce the amount of the annual state funding provided
for the regional service system, including state supplement
payment amounts under section 225C.7A, not to exceed fifteen
percent of the amount.
Sec. 47. Section 331.391, subsection 3, Code 2020, is
amended by striking the subsection.
Sec. 48. Section 331.398, subsection 1, Code 2020, is
amended to read as follows:
1. The financing of a regional mental health and disability
service system is limited to a fixed budget amount. The fixed
budget amount shall be the amount identified in a regional
service system management plan and budget for the fiscal year.
A region shall receive state funding for growth in non-Medicaid
expenditures through the mental health and disability regional
services fund created in section 225C.7A to address increased
service costs, additional service populations, additional core
service domains, and increased numbers of persons receiving
services.
Sec. 49. Section 331.424A, subsection 1, paragraphs a and g,
Code 2020, are amended by striking the paragraphs.
Sec. 50. Section 331.424A, subsection 1, paragraph h, Code
2020, is amended to read as follows:
h. “Statewide per capita expenditure target amount” means
forty-seven twelve dollars and twenty-eight fifty cents.
Sec. 51. Section 331.424A, subsection 5, Code 2020, is
amended to read as follows:
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5. Receipts from the state or federal government for the
mental health and disability services administered or paid for
by a county shall be credited to the county services fund,
including moneys distributed to the county from the department
of human services under section 225C.7A and moneys allocated
under chapter 426B .
Sec. 52. Section 331.424A, subsection 8, Code 2020, is
amended by striking the subsection.
Sec. 53. Section 331.424A, subsection 9, Code 2020, is
amended to read as follows:
9. a. For the fiscal year beginning July 1, 2017 2020 ,
and each subsequent fiscal year, the county budgeted amount
determined for each county shall be the amount necessary to
meet the county’s financial obligations for the payment of
services provided under the regional service system management
plan approved pursuant to section 331.393 , not to exceed an
amount equal to the product of the regional statewide per
capita expenditure target amount multiplied by the county’s
population, and, for fiscal years beginning on or after July 1,
2023, reduced by the amount of the county’s cash flow reduction
amount for the fiscal year calculated under subsection 4 , if
applicable.
b. If a county officially joins a different region, the
county’s budgeted amount shall be the amount necessary to meet
the county’s financial obligations for payment of services
provided under the new region’s regional service system
management plan approved pursuant to section 331.393 , not to
exceed an amount equal to the product of the new region’s
regional per capita expenditure target amount multiplied by
the county’s population, and, for fiscal years beginning on
or after July 1, 2023, reduced by the amount of the county’s
cash flow reduction amount for the fiscal year calculated under
subsection 4 , if applicable.
Sec. 54. Section 347.7, subsection 1, paragraph c, Code
2020, is amended to read as follows:
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c. For the fiscal years beginning July 1, 2017, July 1,
2018, and July 1, 2019, if a county public hospital is located
in a county having a population of two hundred twenty-five
thousand or over and having a county budgeted amount for the
fiscal year under section 331.424A, subsection 9 , Code 2020,
equal to the product of the regional per capita expenditure
target amount multiplied by the county’s population, as those
terms are defined in section 331.424A , Code 2020, the board
of trustees shall appropriate for payment on July 1 of each
such fiscal year from the county public hospital fund to the
board of supervisors for deposit in the county services fund
created pursuant to section 331.424A , two million eight hundred
thousand dollars, and the county public hospital shall, in each
such fiscal year, contract with the county in which the county
public hospital is located to provide care and treatment to
patients who are residents of the county and whose costs for
such care and treatment would otherwise qualify for payment
from the county services fund under section 331.424A , in an
amount equal to three million five hundred thousand dollars.
Sec. 55. COUNTY BUDGET RECERTIFICATION —— REGIONAL SERVICE
SYSTEM MANAGEMENT PLAN AMENDMENT —— TAXES CERTIFIED.
1. If this Act takes effect on or after March 31, 2020,
notwithstanding section 24.17, for the fiscal year beginning
July 1, 2020, a county may recertify the county’s budget as
necessary to implement the provisions of this division of this
Act. A budget recertified pursuant to this section must be
recertified in duplicate to the county auditor not later than
thirty days after the effective date of this division of this
Act, and protests to the budget shall be filed not later than
ten days after the county’s budget is recertified.
2. To the extent necessary to implement the provisions
of this division of this Act, a mental health and disability
services region may amend the region’s regional service system
management plan or annual service and budget plan approved
under section 331.393 for the fiscal year beginning July 1,
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2020.
3. To the extent necessary to implement the provisions of
this division of this Act, the department of management may,
notwithstanding section 24.17, for the fiscal year beginning
July 1, 2020, certify the taxes back to the applicable county
auditor after June 15.
Sec. 56. EMERGENCY RULES. The department of human services
may adopt emergency rules under section 17A.4, subsection 3,
and section 17A.5, subsection 2, paragraph “b”, to implement
the provisions of this division of this Act and the rules shall
be effective immediately upon filing unless a later date is
specified in the rules. Any rules adopted in accordance with
this section shall also be published as a notice of intended
action as provided in section 17A.4.
Sec. 57. APPLICABILITY. This division of this Act applies
July 1, 2020, for fiscal years beginning on or after that date.
Sec. 58. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION XI
NATURAL RESOURCES AND OUTDOOR RECREATION TRUST FUND
Sec. 59. Section 2.45, Code 2020, is amended by adding the
following new subsection:
NEW SUBSECTION . 5A. a. The legislative natural resources
and outdoor recreation trust fund review committee which
shall be composed of ten members of the general assembly,
consisting of five members from each chamber, to be appointed
by the legislative council. In appointing the five members
of each chamber to the committee, the council shall appoint
three members from the majority party and two members from the
minority party.
b. The legislative natural resources and outdoor recreation
trust fund review committee shall have the powers and duties
described in section 2.49.
c. This subsection is repealed December 31, 2050.
Sec. 60. NEW SECTION . 2.49 Legislative natural resources
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and outdoor recreation trust fund review committee.
1. The legislative natural resources and outdoor recreation
trust fund review committee shall meet during the legislative
interim in calendar years 2029, 2039, and 2049. The committee
shall consider the most effective ways to manage trust fund
moneys to further the purpose of Article VII, section 10, of
the Constitution of the State of Iowa. As part of its duties,
the committee may consider any of the following:
a. The administration of the trust fund, trust accounts, and
designated funds as provided in chapter 461.
b. The effectiveness of initiatives supported by trust fund
moneys as provided in chapter 461.
2. The committee shall report to the legislative council
the results of its considerations, which may include
recommendations and proposed legislation for consideration
during the next session of the general assembly.
3. This section is repealed December 31, 2050.
Sec. 61. Section 8.57, subsection 5, paragraph f,
subparagraph (1), subparagraph division (c), Code 2020, is
amended by striking the subparagraph division.
Sec. 62. Section 8.57, subsection 5, paragraph f,
subparagraph (1), subparagraph division (f), Code 2020, is
amended to read as follows:
(f) For the fiscal year beginning July 1, 2018, and for
each fiscal year thereafter, the total moneys in excess of the
moneys deposited under this paragraph “f” in the revenue bonds
debt service fund, the revenue bonds federal subsidy holdback
fund, the vision Iowa fund, the water quality infrastructure
fund, the Iowa skilled worker and job creation fund, and the
general fund of the state shall be deposited in the rebuild
Iowa infrastructure fund and shall be used as provided in this
section , notwithstanding section 8.60 .
Sec. 63. Section 8.57B, subsection 1, Code 2020, is amended
to read as follows:
1. a. A water quality infrastructure fund is created within
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the division of soil conservation and water quality of the
department of agriculture and land stewardship.
b. The fund shall consist of moneys deposited in the
fund pursuant to section 8.57, subsection 5 , paragraph “f” ,
subparagraph (1), subparagraph division (c), moneys all of the
following:
(1) (a) Moneys transferred to the fund pursuant to section
423G.6 , and 461.33.
(b) This subparagraph (1) is repealed December 31, 2050.
(2) Moneys transferred or appropriations made to the fund
and transfers of interest, earnings, and moneys from other
funds as provided by law.
Sec. 64. Section 16.134A, subsection 2, paragraph a, Code
2020, is amended to read as follows:
a. (1) Moneys transferred to the fund pursuant to section
423G.6 sections 461.33 and 461.34 .
(2) This paragraph “a” is repealed on January 1, 2030
December 31, 2050 .
Sec. 65. Section 455A.17, Code 2020, is amended by striking
the section and inserting in lieu thereof the following:
455A.17 Regional meetings.
1. Beginning in calendar year 2023, and every four
calendar years thereafter, the department shall arrange
and conduct regional meetings to identify opportunities for
regional resource enhancement and protection, and to review
and recommend changes in resource enhancement and protection
policies, programs, and funding. The department shall provide
outreach and educational services to those attending, which
shall include the distribution of information regarding
resource enhancement and protection expenditures. The
department shall promote attendance of interested persons for
each regional meeting.
2. The expenses of the department in making the arrangements
for and conducting regional meetings and providing outreach and
educational services shall be paid from moneys credited to the
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administration fund created in section 456A.17.
Sec. 66. Section 455A.18, subsection 1, Code 2020, is
amended to read as follows:
1. a. An Iowa resources enhancement and protection fund is
created in the office of the treasurer of state.
b. The fund consists of all revenues of the following:
(1) (a) Moneys allocated from the natural resources and
outdoor recreation trust fund as provided in section 461.35.
(b) This subparagraph (1) is repealed December 31, 2050.
(2) Revenue and all other moneys lawfully credited or
transferred to the fund.
c. The director shall certify monthly the portions of the
fund that are allocated to the various accounts as provided
under section 455A.19 . The director shall certify before the
twentieth of each month the portions of the fund resulting from
the previous month’s receipts to be allocated to the various
accounts.
Sec. 67. Section 455A.18, subsection 3, Code 2020, is
amended to read as follows:
3. a. For each fiscal year of the fiscal period beginning
July 1, 1997, and ending June 30, 2021, there is appropriated
from the general fund, to the Iowa resources enhancement and
protection fund, the amount of twenty million dollars, to be
used as provided in this chapter . However, in any fiscal
year of the fiscal period, if moneys from the lottery are
appropriated by the state to the fund, the amount appropriated
under this subsection shall be reduced by the amount
appropriated from the lottery.
b. Section 8.33 does not apply to moneys appropriated under
this subsection credited to the fund .
Sec. 68. Section 461.2, Code 2020, is amended to read as
follows:
461.2 Definitions.
As used in this chapter , unless the context otherwise
requires:
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1. “Authority” means the economic development authority
created in section 15.105.
2. “Department” “Custodial department” means the department
of agriculture and land stewardship, the department of
management, the department of natural resources, or the
department of transportation.
3. “Designated fund” means the water quality infrastructure
fund created in section 8.57B, the water quality financial
assistance fund created in section 16.134A, or the Iowa
resources enhancement and protection fund created in section
455A.18.
2. 4. “Fiscal year” means the state fiscal year effective
as provided in section 3.12 .
3. 5. “Initiative” includes a program, project, practice,
strategy, or plan established or administered by an agency that
furthers , or under the supervision or oversight of, a custodial
department or the Iowa finance authority, if the initiative is
supported in whole or in part by trust fund moneys to further a
constitutional purpose as provided in section 461.3 .
6. “Iowa nutrient reduction strategy” means the same as
defined in section 455B.171.
7. “Nonpoint source” means a source of pollution other than
a point source.
8. “Point source” means the same as defined in section
455B.171.
9. “Public use area” means a park, preserve, recreation
area, forest, water body, or a land or water trail owned or
managed by the state or a political subdivision of the state.
4. 10. “Recreational purpose” includes means only hunting , ;
trapping , ; angling , ; horseback riding , ; swimming , ; boating , ;
camping , ; picnicking , ; hiking , ; biking; recreational shooting;
archery; using land or water trails; bird watching , ; nature
study , ; water skiing , ; snowmobiling , other summer and winter
sports, and ; or viewing or enjoying historical, archaeological,
scenic, or scientific sites.
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11. “Trust account” means the natural resources trust
account created in section 461.32, the soil conservation and
nonpoint source water protection trust account created in
section 461.33, the watershed protection trust account created
in section 461.34, the local conservation partnership trust
account created in section 461.36, the water and land trails
trust account created in section 461.37, or the lake and stream
restoration trust account created in section 461.38.
5. 12. “Trust fund” means the natural resources and outdoor
recreation trust fund created in section 461.31 .
6. 13. “Trust fund moneys” means moneys originating from
credited to the natural resources and outdoor recreation trust
fund or moneys allocated from the trust fund, including but not
limited to moneys allocated to a trust account or allocated or
transferred to a designated fund .
14. “Water trail” means a point-to-point travel system on a
navigable water body capable of supporting a floating vessel
capable of carrying one or more persons on a recommended route
connecting the points.
Sec. 69. Section 461.3, Code 2020, is amended to read as
follows:
461.3 Constitutional purpose , and implementation , and
revenue .
1. This chapter is created for the constitutional purposes
of protecting and enhancing water quality and natural areas
in this state, including parks, trails, and fish and wildlife
habitat, and conserving agricultural soils in this state.
2. This chapter is intended to implement Article VII,
section 10, of the Constitution of the State of Iowa by
establishing the natural resources and outdoor recreation
trust fund, accounts in the including trust fund accounts ,
and appropriating or allocating trust fund moneys to support
initiatives specified in subchapter IV . This chapter shall not
be construed to require the state to appropriate, allocate,
or transfer other moneys to support those initiatives or
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constitutional purposes.
Sec. 70. Section 461.11, subsection 2, Code 2020, is amended
to read as follows:
2. The heads of each department receiving trust fund moneys
the custodial departments and the director of the authority
shall regularly meet and whenever practicable collaborate
in decision making including by adopting rules, providing
for the administration of the trust fund and trust accounts,
establishing funding priorities, and determining when it is
beneficial to provide joint funding of initiatives.
Sec. 71. NEW SECTION . 461.20 Information regarding trust
fund moneys.
1. Each year the department of revenue shall calculate
an estimate of the total revenue to be transferred to the
trust fund during the following fiscal year as required
pursuant to section 423.2A. Not later than May 1 of each
year, the department of revenue shall submit the estimate to
each custodial department, the authority, and the legislative
services agency.
2. A custodial department shall at least annually notify the
legislative services agency of transfers of trust fund moneys
from a trust account to another trust account or designated
fund as authorized in this chapter.
Sec. 72. Section 461.21, Code 2020, is amended to read as
follows:
461.21 Audit.
1. The auditor of state or a certified public accounting
firm appointed by the auditor of state shall conduct an annual
audit of the trust fund and all trust accounts and transactions
of the trust fund and trust accounts in the same manner as
provided for departments pursuant to chapter 11, subchapter I .
2. The auditor of state or the certified public accounting
firm appointed by the auditor as provided in subsection 1
shall be paid from trust fund moneys without reducing the
percentage of trust fund moneys distributed allocated to the
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Iowa resources enhancement and protection fund or any one a
trust account established or designated fund pursuant to this
chapter subchapter IV .
Sec. 73. Section 461.22, Code 2020, is amended to read as
follows:
461.22 Report Trust fund report .
The three departments department of management shall jointly
prepare and submit to the governor and the general assembly not
later than January 15 of each year a complete trust fund report
for the preceding fiscal year in an electronic format detailing
all of the following:
1. The receipts and expenditures of the trust fund and its
trust accounts, a summary of initiatives supported by trust
fund moneys, the results of those expenditures, any performance
goals or measurements, and plans for future short-term or
long-term expenditures.
2. Recommendations An evaluation of the use of trust fund
moneys to further progress in achieving the goals of the Iowa
nutrient reduction strategy as prepared by the department of
agriculture and land stewardship, the department of natural
resources, and the college of agriculture and life sciences
of the Iowa state university of science and technology. The
evaluation shall be based on the latest credible findings and
recommendations recognized by those entities. The evaluation
may include recommendations to the governor and general
assembly, including legislation proposed by one or more of the
departments entities .
Sec. 74. Section 461.23, Code 2020, is amended to read as
follows:
461.23 Rules.
The department of revenue, the department of agriculture and
land stewardship, the department of management, the department
of natural resources, and the department of transportation , the
Iowa finance authority, and the economic development authority
shall adopt rules separately or jointly as necessary in order
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to implement and administer this chapter .
Sec. 75. Section 461.24, Code 2020, is amended by striking
the section and inserting in lieu thereof the following:
461.24 Public listing.
The department of management shall publish and maintain a
public listing of moneys credited to and allocated from the
trust fund, trust fund moneys allocated or transferred from
trust accounts, and trust fund moneys allocated or transferred
to designated funds to support initiatives. This section does
not require the disclosure of information that is confidential
as provided by rules adopted pursuant to section 461.23.
Sec. 76. NEW SECTION . 461.25 Use of trust fund moneys.
1. A custodial department shall not appropriate, allocate,
or transfer trust fund moneys except as provided in this
chapter. However, this subsection shall not be construed to
limit a custodial department from using trust fund moneys with
another person, including a custodial department, when engaging
in a joint initiative as authorized by law.
2. During any fiscal year, a custodial department shall not
use more than five percent of trust fund moneys allocated to
a trust account to pay for expenses incurred in administering
trust fund moneys allocated to that trust account.
3. In administering the use of trust fund moneys allocated
to a trust account, a custodial department shall provide a
higher priority to supporting initiatives that further goals of
the Iowa nutrient reduction strategy.
4. A custodial department shall administer the use of
trust fund moneys to support an initiative having primarily
a recreational purpose only if such use is in cooperation
with the authority. The authority shall review, score, and
rank applications to support such initiatives as part of a
competitive evaluation process. The scoring criteria must
further the economic development policy of the state as
provided in chapter 15.
5. When making a determination to support competing
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proposed initiatives relating to a public use area that
benefits a locality, a custodial department or the authority
shall provide a higher priority to supporting an initiative to
improve an existing public use area.
6. When making a determination to support a proposed
initiative to establish, improve, or expand a land trail,
the proposal shall not be approved unless the sponsor of the
proposal demonstrates to the custodial department or other
entity making the funding decision how the trail is to be
maintained by other sources of revenue.
7. In administering the use of trust fund moneys allocated
to a trust account to support an initiative relating to
the management of land, this chapter does not do any of the
following:
a. Prohibit the farming of the land in a manner that is
consistent with the Iowa nutrient reduction strategy.
b. Require a separation distance between an animal feeding
operation and a public use area that is more restrictive than
if the land were not managed pursuant to the initiative.
8. Trust fund moneys shall not be used to support any of the
following:
a. An initiative that establishes, improves, or expands a
single or multipurpose athletic field, baseball or softball
diamond, tennis court, golf course, swimming pool, or other
group or organized sport facility.
b. The taking of property by exercising the power of eminent
domain, including by acquiring property as provided in chapters
6A and 6B.
Sec. 77. Section 461.31, Code 2020, is amended to read as
follows:
461.31 Natural resources and outdoor recreation trust fund
—— creation.
1. A natural resources and outdoor recreation trust fund
is created within the state treasury. The trust fund shall be
administered by the department of management.
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2. a. The trust fund shall be composed comprised of moneys
all of the following:
(1) Moneys transferred to the trust fund pursuant to section
423.2A.
(2) Other moneys required to be credited to the trust
fund by law and moneys accepted by a custodial department for
placement in an account established in this subchapter and the
trust fund from any source.
b. Trust fund moneys are exclusively appropriated by law
to carry out the constitutional purposes provided described in
section 461.3 .
c. Trust fund moneys shall supplement and not replace
moneys appropriated by the general assembly to support the
constitutional purposes provided in section 461.3 .
d. Trust fund moneys shall only be used to support voluntary
initiatives and shall not be used for regulatory efforts,
enforcement actions, or litigation.
3. In administering a trust fund account, a custodial
department may contract, sue and be sued, and authorize payment
for costs, fees, commissions, and other reasonable expenses
from the trust account. However, a custodial department shall
not in any manner directly or indirectly pledge the credit of
this state.
4. a. Except as provided in paragraph “b” , the treasurer
of state shall, each month as directed by the department of
management, allocate all trust fund moneys that have been
credited to the trust fund, including moneys transferred to the
trust fund as provided in section 423.2A, to each trust account
and designated fund as provided in this subchapter.
b. Notwithstanding sections 461.32 through 461.38, for the
fiscal year beginning July 1, 2021, and for each subsequent
fiscal year, only that amount as authorized by an Act of
the general assembly shall be allocated from the trust fund
to a trust account or designated fund as provided in this
subchapter. However, if for a fiscal year no Act of the
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general assembly authorizes trust fund moneys to be allocated
from the trust fund, the trust fund moneys shall be allocated
from the trust fund to the trust accounts and designated funds
as provided in this subchapter by operation of law.
5. a. Notwithstanding section 8.33 , any unexpended balance
in the trust fund or in an a trust account created within the
trust fund at the end of each fiscal year shall be retained in
the trust fund or the respective trust account.
b. Notwithstanding section 12C.7, subsection 2 , interest or
earnings on investments or time deposits of the moneys in the
trust fund and its respective trust accounts shall be credited
to the trust fund and its respective trust accounts.
c. The recapture of awards originating from an a trust
account and other repayments to an a trust account shall be
retained in that trust account.
Sec. 78. Section 461.32, Code 2020, is amended to read as
follows:
461.32 Natural resources trust account —— allocations.
1. A natural resources trust account is created in the trust
fund. Twenty-three The trust account shall be administered by
the department of natural resources.
2. Eighteen percent of the moneys credited to the trust fund
shall be allocated to the trust account.
2. 3. The trust account shall be used by the department of
natural resources to support all of the following initiatives:
a. The establishment, restoration, or enhancement of state
parks, state preserves, state forests, wildlife areas, wildlife
habitats, native prairies, and wetlands.
(1) A higher priority shall be provided to supporting
initiatives for the maintenance, preservation, or restoration
of land and a lower priority shall be provided to supporting
initiatives for the purchase or acquisition of land.
(2) The department shall utilize an index that includes a
comprehensive assessment mechanism to produce a statistically
verifiable basis for determining whether to approve or
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disapprove the purchase or acquisition of the land. The
department shall establish index criteria that justifies the
land’s removal from private ownership and use.
b. The construction or improvement of facilities located on
land owned or managed by the department.
b. c. Wildlife diversity.
c. d. Recreational purposes.
d. e. Technical assistance and financial incentives
provided to private landowners to promote the management of
forests, fisheries, recreational areas, wetlands, and wildlife.
e. f. The improvement of water trails, rivers , and streams.
f. g. Education and outreach that provide instruction
regarding natural history and the outdoors. The subjects
of such instruction may relate to opportunities involving a
recreational purposes purpose , outdoor safety, and or ethics.
3. The department of natural resources shall to every extent
possible consider its comprehensive plan provided in section
456A.31 when making funding decisions.
Sec. 79. Section 461.33, Code 2020, is amended to read as
follows:
461.33 Soil conservation and nonpoint source water protection
trust account —— allocations.
1. A soil conservation and nonpoint source water protection
trust account is created in the trust fund. Twenty The trust
account shall be administered by the department of agriculture
and land stewardship.
2. Thirty-four percent of the moneys credited to the trust
fund shall be allocated to the trust account.
3. Forty-seven percent of trust fund moneys allocated to
the trust account shall first be transferred as directed by the
department to any or all of the following:
a. The water quality infrastructure fund created in section
8.57B to support water quality agriculture infrastructure
programs created in section 466B.43 in order to reduce nutrient
loads from nonpoint sources.
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b. The water quality financial assistance fund created
in section 16.134A to support the water quality urban
infrastructure program created in section 466B.44.
2. 4. a. The account shall be used by the department of
agriculture and land stewardship remaining trust fund moneys
allocated to the trust account shall be used by the department
to support all of the following initiatives:
a. (1) Soil conservation and watershed protection,
including by supporting the department’s division of
soil conservation and water quality within the department
of agriculture and land stewardship and soil and water
conservation district commissioners. The department and
commissioners may provide for the installation establishment of
conservation practices and watershed protection improvements as
provided in chapters 161A , 161C , 461A , and 466 , and 466B .
b. (2) The conservation of highly erodible land. The
department of agriculture and land stewardship may execute
contracts with private landowners who agree to reserve such
land only for uses that prevent erosion in excess of the
applicable soil loss limits as established in section 161A.44 .
c. (3) Soil conservation or crop management practices
used on land producing biomass for biorefineries, including
cellulosic ethanol production.
3. b. The department of agriculture and land stewardship
may use unencumbered or unobligated trust fund moneys allocated
to the trust account to provide financial incentives or
technical assistance to landowners.
5. During a fiscal year, the department may transfer
unencumbered or unobligated trust fund moneys allocated to
the trust account for use by the department as is provided in
subsection 4 to any of the following:
a. The water quality infrastructure fund created in section
8.57B to support water quality agriculture infrastructure
programs created in section 466B.43 in order to reduce nutrient
loads from nonpoint sources.
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b. The water quality financial assistance fund created
in section 16.134A to support the water quality urban
infrastructure program created in section 466B.44.
Sec. 80. Section 461.34, Code 2020, is amended to read as
follows:
461.34 Watershed protection trust account —— allocations.
1. A watershed protection trust account is created in the
trust fund. Fourteen The trust account shall be administered
by the department of natural resources.
2. Fifteen percent of the moneys credited to the trust fund
shall be allocated to the trust account.
3. Forty-seven percent of trust fund moneys allocated
to the trust account shall first be transferred to the water
quality financial assistance fund created in section 16.134A
for appropriation as provided in that section.
2. 4. The account Of the remaining trust fund moneys
allocated to the trust account, fifty percent shall be used
cooperatively distributed for use by the department of
natural resources and the department of agriculture and land
stewardship to support all of the following initiatives:
a. Water water quality resource projects administered by
the department of natural resources to preserve watersheds,
including but not limited to all of the following:
(1) a. Projects to protect, restore, or enhance water
quality in the state through the provision of financial
assistance to communities for impairment-based, locally
directed watershed projects. The department may use the
account trust fund moneys to support the water resource
restoration sponsor program as provided in section 455B.199 .
(2) b. Regional and community watershed assessment,
planning, and prioritization efforts, including as provided in
chapter 466B .
c. Water quality protection programs provided in section
466.7 that relate to any of the following:
(1) The administration of geographic information systems
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for use in developing, monitoring, and displaying local
watershed information.
(2) An activity to support the collection and analysis of
water quality monitoring.
(3) Floodplain permitting.
(4) Flood protection education to provide information to
local officials regarding floodplain management.
b. 5. Surface Of the remaining trust fund moneys allocated
to the trust account, fifty percent shall be distributed for
use by the department of agriculture and land stewardship
to support surface water protection projects and practices
administered by the department of agriculture and land
stewardship or the department of natural resources, as
described in the Iowa nutrient reduction strategy including but
not limited to the installation of permanent vegetation cover,
filter strips, grass waterways, edge of field practices, and
riparian forest buffers; dredging; and bank stabilization. The
departments of agriculture and land stewardship and natural
resources department may use the account trust fund moneys
to support the conservation buffer strip program provided in
section 466.4 and the conservation reserve enhancement program
as provided in section 466.5 .
3. 6. The departments’ A decision by a department to
prioritize initiatives may be based on the priority list of
watersheds provided in section 456A.33A .
7. During a fiscal year, the department of natural
resources or the department of agriculture and land stewardship
may transfer unencumbered or unobligated trust fund moneys
distributed to the custodial department pursuant to subsection
4 or 5 to the water quality financial assistance fund created
in section 16.134A.
Sec. 81. Section 461.35, Code 2020, is amended to read as
follows:
461.35 Iowa resources enhancement and protection fund ——
allocation.
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Thirteen Ten percent of the moneys credited to the trust
fund shall be allocated to the Iowa resources enhancement
and protection fund created in section 455A.18 for further
allocation as provided in section 455A.19 .
Sec. 82. Section 461.36, Code 2020, is amended by striking
the section and inserting in lieu thereof the following:
461.36 Local conservation partnership trust account ——
allocations.
1. A local conservation partnership trust account is
created in the trust fund. The trust account shall be
administered by the department of natural resources.
2. Nine percent of the moneys credited to the trust fund
shall be allocated to the trust account.
3. The department shall allocate the trust fund moneys
credited to the account to local communities participating
in the local conservation partnership program as provided in
section 461.36A.
Sec. 83. NEW SECTION . 461.36A Local conservation
partnership program.
1. As used in this section, unless the context otherwise
requires:
a. “Department” means the department of natural resources.
b. “Local community” includes a political subdivision or
a watershed management authority created pursuant to section
466B.22.
2. The department shall establish and administer a local
conservation partnership program to provide financing to local
communities to do any of the following:
a. Maintain and improve parks, preserves, wildlife areas,
wildlife habitats, native prairies, forests, or wetlands.
b. Promote wildlife diversity.
c. Further a recreational purpose.
d. Improve rivers and streams.
e. Sponsor education and outreach programs and projects that
provide instruction regarding natural history and the outdoors.
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The subjects of such instruction may relate to opportunities
involving a recreational purpose, outdoor safety, or ethics.
The programs and projects may assist Iowa students studying in
fields of science, technology, engineering, and mathematics.
f. Further any other purpose described in section 350.1.
3. As part of a local conservation partnership under the
program, two or more local communities may enter into chapter
28E agreements, and a local community may cooperate with
the federal government or a nongovernmental organization.
A nongovernmental organization shall not be eligible to
participate in a local community partnership under the program
unless the nongovernmental organization submits an application
in association with a political subdivision or county
conservation board and enters into a chapter 28E agreement with
the political subdivision or county conservation board.
4. a. A local community is not eligible to receive moneys
from the department under the program to support a local
conservation partnership, unless the local community finances
a minimum percentage of the estimated or total cost of the
initiative, whichever is less.
b. The minimum amount of the cost-share contribution by a
local community, as described in paragraph “a” , shall be as
follows:
(1) Ten percent for a local community located in a county
having a population of fifteen thousand or less.
(2) Twenty-five percent for a local community located in a
county having a population of more than fifteen thousand but
less than one hundred thousand.
(3) Seventy-five percent for a local community located in a
county having a population of one hundred thousand or more.
Sec. 84. Section 461.37, Code 2020, is amended to read as
follows:
461.37 Trails Water and land trails trust account ——
allocations.
1. A water and land trails trust account is created in the
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trust fund. Ten The trust account shall be administered by the
department of transportation.
2. Four percent of the moneys credited to the trust fund
shall be allocated to the trust account.
2. 3. The Of the amount of trust fund moneys allocated
to the trust account, fifty percent shall be distributed for
use by the department of transportation and the department of
natural resources shall use moneys in the account to support
initiatives related to the design, establishment, maintenance,
improvement, and expansion of land trails.
3. 4. The Of the amount of trust fund moneys allocated to
the trust account, fifty percent shall be distributed for use
by the department of natural resources may use the account to
support the design, establishment, maintenance, improvement,
and expansion of water trails. The department shall provide
priority to stream restoration.
5. a. During a fiscal year, and pursuant to an agreement
between the department of transportation and the department
of natural resources, either custodial department that is
distributed trust fund moneys for use under this section may
transfer unencumbered or unobligated trust fund moneys to the
other custodial department for use by the other custodial
department as provided in this section.
b. During a fiscal year, and pursuant to an agreement
between the department of transportation and the department
of natural resources, the department of transportation
may transfer unencumbered or unobligated trust fund moneys
allocated to the trust account and distributed for use by
the department of transportation to another trust account
administered by the department of natural resources for use by
the department of natural resources.
Sec. 85. Section 461.38, Code 2020, is amended to read as
follows:
461.38 Lake and stream restoration trust account ——
allocations.
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1. A lake and stream restoration trust account is created in
the trust fund. Seven The trust account shall be administered
by the department of natural resources.
2. Ten percent of the moneys credited to the trust fund
shall be allocated to the trust account.
2. 3. The department of natural resources shall use moneys
in allocated to the trust account to support public all of the
following:
a. Public lake restoration initiatives as follows:
a. (1) An initiative shall account for a lake’s
recreational purpose , and provide for environmental, aesthetic,
ecological, and social value. It must improve water quality
further a goal of the Iowa nutrient reduction strategy .
b. (2) The department’s A decision by the department to
prioritize an initiative may be based on the department’s lake
restoration plan and report as provided in section 456A.33B and
the Iowa nutrient reduction strategy .
b. The stabilization and restoration of stream banks.
Sec. 86. NEW SECTION . 461.51 Repeal.
This chapter is repealed December 31, 2050.
Sec. 87. CODE EDITOR DIRECTIVE.
1. The Code editor is directed to make the following
transfers:
a. Section 461.36A, as enacted in this division of this Act,
to section 455A.31.
b. Section 461.35, as amended in this division of this Act,
to section 461.41.
2. The Code editor shall correct internal references in the
Code and in any enacted legislation as necessary due to the
enactment of this section.
Sec. 88. REPEAL. Section 455A.20, Code 2020, is repealed.
Sec. 89. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2021.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
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the explanation’s substance by the members of the general assembly.
This bill relates to state and local revenue and finances
including modifying individual income taxes, sales and use
taxes, water service tax, certain tax credits, and provisions
relating to county juvenile court expenses and mental health
region funding. The bill is organized into divisions.
DIVISION I —— INDIVIDUAL INCOME TAX BRACKETS AND RATES
BEGINNING 2021 TAX YEAR. Current law provides nine regular tax
brackets containing progressively higher amounts of taxable
income that are taxed at progressively higher tax rates, from
a low of 0.33 percent, to a high of 8.53 percent. The taxable
income amounts in each tax bracket are indexed to inflation
and increased each year. For tax years beginning on or after
January 1, 2021, the bill reduces the tax rate in each bracket,
and reduces the number of brackets to eight, as follows:
Income over: But not over: Tax
1) $0 $3,364 0.30%
2) $3,364 $6,728 2.00%
3) $6,728 $15,138 3.73%
4) $15,138 $25,230 5.07%
5) $25,230 $33,640 5.36%
6) $33,640 $50,460 5.63%
7) $50,460 $75,690 6.97%
8) $75,690 or more 7.48%
The individual tax rates listed above apply for all tax years
beginning on or after January 1, 2021, until such time as a
different tax rate takes effect as described in division III.
DIVISION II —— CONTINGENT EFFECTIVE DATE IN 2018 IOWA ACTS
—— NET GENERAL FUND REVENUES CALCULATION. For purposes of
describing contingent individual income tax changes in 2018
Iowa Acts, chapter 1161, section 133, the term “trigger year”
means the first tax year after the following occurrence:
the net general fund revenues for FY 2022 equal or exceed
$8,314,600,000, and also equal or exceed 104 percent of the
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net general fund revenues for FY 2021; or if the previous
conditions are not satisfied, on or after the January 1
following the first fiscal year for which the net general
fund revenues equal or exceed $8,314,600,000, and also equal
or exceed 104 percent of the net general fund revenues for
the fiscal year immediately preceding that fiscal year. The
bill strikes the above-mentioned condition relating to net
general fund revenues exceeding 104 percent of the net general
fund revenues for the preceding fiscal year. Therefore, the
“trigger year” occurs when net general fund revenues equal
or exceed $8,314,600,000 during FY 2022 or any fiscal year
thereafter, and the contingent individual income tax changes
described in division III of the bill become effective as well
as other tax changes in 2018 Iowa Acts, chapter 1161, sections
99 through 134.
DIVISION III —— FUTURE CONTINGENT INDIVIDUAL INCOME TAXES
BEGINNING IN 2023 TAX YEAR. Commencing with the tax year
beginning January 1, 2023, the bill reduces the number of
individual income tax brackets to four and reduces the tax
rates in the aggregate if certain net tax receipt revenue
targets are met or exceeded as described in division II of
the bill. For a married couple filing a joint return, the
taxable income amounts in each individual bracket are doubled.
The taxable income amounts in each tax bracket are indexed to
inflation and increased each year. The contingent individual
income tax brackets and rates are as follows for individuals
other than a married couple filing jointly if the certain net
tax receipt revenue targets are met or exceeded:
Income over: But not over: Tax
1) $0 $6,000 4.00%
2) $6,000 $30,000 4.45%
3) $30,000 $75,000 4.99%
4) $75,000 or more 5.50%
The contingent income tax brackets and rates for a married
couple filing a joint return are as follows if the certain net
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tax receipt revenue targets are met or exceeded:
Income over: But not over: Tax
1) $0 $12,000 4.00%
2) $12,000 $60,000 4.45%
3) $60,000 $150,000 4.99%
4) $150,000 or more 5.50%
Current Iowa law allows married persons to file separately
on a combined return so there are no separate tax brackets for
a married couple filing a joint return. However, the ability
for married persons to file separately on a combined return
is repealed in the “trigger year” in 2018 Iowa Acts, chapter
1161, due to the starting point to calculate Iowa income taxes
moving from federal adjusted gross income to federal taxable
income, and federal law does not permit married persons to file
separately on a combined return.
DIVISION IV —— CHILD AND DEPENDENT CARE AND EARLY CHILDHOOD
TAX CREDITS. Currently, an individual may claim 30 percent of
the federal child and dependent care credit provided in section
21 of the Internal Revenue Code against the individual income
tax if the individual’s net income is less than $45,000. Under
the bill, an individual may claim 30 percent of the federal
child and dependent care credit provided in section 21 of the
Internal Revenue Code against the individual income tax if the
individual’s net income is less than $90,000.
The bill also increases the income threshold determining the
eligibility of a taxpayer for the early childhood development
tax credit. The bill increases the eligibility threshold from
a taxpayer whose net income is less than $45,000 per year to
less than $90,000 per year. By increasing the eligibility
threshold, taxpayers whose net income is less than $90,000 are
now eligible to take the early childhood development tax credit
equaling 25 percent of the first $1,000 which the taxpayer has
paid to others for early childhood development expenses for
each dependent ages three through five.
The changes in the division apply to tax years beginning on
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or after January 1, 2021.
DIVISION V —— PRECEPTOR TAX CREDIT. The bill establishes a
preceptor tax credit to be administered by the department of
public health and the department of revenue.
The bill defines “preceptor” to mean a licensed practicing
physician who provides on-site education to a medical student
or resident at a hospital or medical clinic in a rural area.
The bill defines “rural area” to mean any county in the state
other than the 10 largest counties according to the most recent
federal decennial census.
The bill allows a tax credit against the taxes imposed in
Code chapter 422, division II (personal income tax), equal
to $1,000 per medical student or resident supervised by the
preceptor up to a maximum of $10,000 per year.
Any tax credit in excess of the preceptor’s tax liability for
the tax year is not refundable and shall not be credited to the
tax liability for any following year.
The credits shall be issued annually on a first-come,
first-served basis and shall not exceed $100,000 in cumulative
value.
The bill specifies that the department of public health in
collaboration with the department of revenue shall develop a
system for the application, review, and authorization of the
issuance of the preceptor tax credit.
The bill requires the department of public health and the
department of revenue to adopt rules to administer the tax
credit.
The tax credit applies to tax years beginning on or after
January 1, 2021.
DIVISION VI —— SALES AND USE TAX. An amendment to the Iowa
Constitution was ratified on November 2, 2010, which created
a natural resources and outdoor recreation trust fund (fund)
and dedicated a portion of state revenues to the fund for
the purposes of protecting and enhancing water quality and
natural areas in the state including parks, trails, and fish
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and wildlife habitat, and conserving agricultural soils in
the state (article VII, section 10). The fund is codified in
Code section 461.31. Pursuant to the amendment, the amount
credited to the fund will be equal to the amount generated
by an increase in the state sales tax rate occurring after
the effective date of the constitutional amendment, but shall
not exceed the amount that a state sales tax rate of 0.375
percent would generate. The state sales tax rate has not
been increased since the effective date of the constitutional
amendment, so no amounts have been credited to the fund. The
bill increases the sales tax rate and the use tax rate from 6
percent to 7 percent on January 1, 2021. The bill allocates
the moneys from the natural resources and outdoor recreation
trust fund in another part of the bill. The bill also amends
the transfer of sales and use tax revenues to the secure an
advanced vision for education fund (SAVE) in Code sections
423.2A(2) and 423.43 to ensure that SAVE receives the same
amount of sales and use tax revenues as it did prior to the
sales and use tax increases provided in the bill.
DIVISION VII —— WATER SERVICE TAX REPEAL. Currently, an
excise tax at the rate of 6 percent is imposed on the sales
price from the sale or furnishing by a water utility of a water
service in the state to consumers or users. The bill strikes
and replaces the current future repeal provisions of the water
service tax in Code section 423G.7 and provides that the water
service tax is repealed January 1, 2021.
The amendment to Code section 421.71 specifies that the
applicable law related to a private cause of action associated
with the collection of the water service tax remains in the
2020 Code, despite the repeal of the water service tax in the
bill.
DIVISION VIII —— SALES AND USE TAX EXEMPTIONS. Beginning
January 1, 2021, the bill exempts the sale of feminine hygiene
products as defined in the bill from the sales tax. The bill
also exempts the sale of child and adult diapers on or after
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January 1, 2021, whether cloth or disposable.
The bill makes a conforming amendment in Code section
423.3(68)(c)(1)(a) by striking a reference to child and adult
diapers that relate to the tax-free holiday.
By operation of Code section 423.6, an item exempt from the
imposition of the sales tax is also exempt from the use tax
imposed in Code section 423.5.
DIVISION IX —— JUVENILE COURT EXPENSES. The bill provides
that juvenile court expenses shall be paid from the indigent
defense fund established in Code section 815.11. Currently,
most juvenile court expenses incurred by a county are
eventually paid by the state through the indigent defense
fund; however, certain juvenile expenses are a charge upon the
county in which the juvenile proceedings are held pursuant to
a formula in Code section 232.141(3). The bill strikes the
county expense formula in Code section 232.141(3), therefore
allowing most juvenile court expenses to be paid from the
indigent defense fund without the county paying some expenses
based upon the formula.
DIVISION X —— MENTAL HEALTH REGION FUNDING. The bill strikes
current Code section 225C.7A containing the mental health
and disability regional services fund and replaces that Code
section by establishing a mental health and disability services
state supplement fund under the authority of the department
of human services. Moneys in the fund shall be used solely
for purposes of making state supplement payments under the
Code section. For each fiscal year beginning on or after
July 1, 2020, the moneys available in a fiscal year in the
mental health and disability services state supplement fund are
appropriated to the department of human services and shall be
distributed to each county on a per capita basis.
For a county to be eligible to receive a state supplement
payment, the county, or the county’s mental health and
disability services region on behalf of the county, shall
submit a core services domain report to the department of human
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services on or before a date established by the department by
rule. The contents of the report shall enable the department
to evaluate, along with other available information, whether
each county or the county’s mental health and disability
services region is in substantial compliance with the required
core service domains under Code section 331.397(4) and Code
section 331.397A(4). If the county is not in substantial
compliance with the required core service domains and has
failed to comply with a corrective action plan required by
the department of human services, the department shall reduce
the amount of the state supplement payment by an amount
commensurate with the level of noncompliance, not to exceed 15
percent of the state supplement payment amount.
State supplement payments received by a county under new
Code section 225C.7A shall be deposited in the county services
fund under Code section 331.424A and used solely for payment of
services provided under the regional service system management
plan.
Code section 331.424A(6) establishes the amount certified
for levy by the county each fiscal year to raise funds for
mental health and disability services under the regional
service system. Revenues from taxes imposed by the county
credited to the county mental health and disability services
fund shall not exceed an amount equal to the county budgeted
amount, which is the amount necessary to meet the county’s
financial obligations for the payment of services provided
under the regional service system management plan, not to
exceed an amount equal to the product of the regional per
capita expenditure target amount multiplied by the county’s
population, and, for fiscal years beginning on or after July 1,
2023, reduced by the amount of the county’s cash flow reduction
amount. The bill modifies the county budgeted amount that may
be certified for levy by the county for such services. For the
fiscal year beginning July 1, 2020, and each subsequent fiscal
year, the county budgeted amount determined for each county
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shall be the amount necessary to meet the county’s financial
obligations for the payment of services provided under the
regional service system management plan approved pursuant to
Code section 331.393, not to exceed an amount equal to the
product of the statewide per capita expenditure target amount
multiplied by the county’s population, and, for fiscal years
beginning on or after July 1, 2023, reduced by the amount of
the county’s cash flow reduction amount, if applicable. The
statewide per capita expenditure target amount is reduced in
the bill from $47.28 to $12.50.
If division X of the bill takes effect on or after March
31, 2020, a county may recertify the county’s budget for the
fiscal year beginning July 1, 2020, as necessary to implement
the provisions of division X of the bill. Similarly, to the
extent necessary to implement the provisions of division X of
the bill, a mental health and disability services region may
amend the region’s regional service system management plan or
annual service and budget plan for the fiscal year beginning
July 1, 2020, and the department of management may, for the
fiscal year beginning July 1, 2020, certify the taxes back to
the applicable county auditor after June 15.
Division X of the bill authorizes the department of human
services to adopt emergency rules to implement the provisions
of division X of the bill and the rules shall be effective
immediately upon filing unless a later date is specified in
the rules. However, any emergency rules adopted shall also be
published as a notice of intended action as provided in Code
section 17A.4.
The division takes effect upon enactment and applies July 1,
2020, for fiscal years beginning on or after that date.
DIVISION XI —— CONSTITUTIONAL IMPLEMENTATION. The bill
amends provisions in Code chapter 461 (the natural resources
and outdoor recreation Act) that is to implement Article VII,
section 10, of the Constitution of the State of Iowa when
the sales tax is increased. The Code chapter establishes
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the natural resources and outdoor recreation trust fund
(trust fund) and associated accounts (renamed trust accounts)
supported by a portion of state revenue generated by an
increase in the state’s sales tax. The purpose of the
constitutional provision is to protect and enhance water
quality and natural areas, including parks, trails, and fish
and wildlife habitat, and conserve agricultural soils in this
state.
ALLOCATIONS OF TRUST FUND MONEYS. The bill alters the
percentage of moneys to be allocated from the trust fund
(trust fund moneys) to its trust accounts, including the
natural resources trust account administered by the department
of natural resources (DNR), the soil conservation and water
protection trust account (renamed the soil conservation and
nonpoint source water protection trust account) administered
by the department of agriculture and land stewardship (DALS),
the watershed protection trust account administered by DNR
in cooperation with DALS, the local conservation partnership
trust account administered by DNR, the trails trust account
(renamed the water and land trails trust account) administered
by DOT in cooperation with DNR, and the lake restoration
trust account (renamed the lake and stream restoration trust
account) administered by DNR. It also reduces the allocations
of trust fund moneys to the Iowa resources enhancement and
protection (REAP) fund administered by DNR. It transfers
trust fund moneys allocated to the renamed soil conservation
and nonpoint source water protection trust account and the
watershed protection trust account to the water quality
infrastructure fund used to support nonpoint water quality
programs administered by DALS; and to the water quality
financial assistance fund administered by the Iowa finance
authority (IFA) to support the wastewater and drinking water
treatment financial assistance program (administered by IFA),
the water quality financing program (administered by IFA), and
the water quality urban infrastructure program (administered by
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DALS). The bill revises provisions in the local conservation
partnership trust account as a program to be administered
by DNR. The bill provides that trust fund moneys may be
transferred from the renamed soil conservation and nonpoint
source water protection trust account to the water quality
infrastructure fund and from the watershed protection trust
account to the water quality financial assistance fund upon
direction by the custodial department. The bill eliminates
current funding sources, including the annual appropriation
to the REAP fund from the general fund which is due to expire
on June 30, 2021, and both a tax on the sales price on water
service, which another division of this bill repeals, and the
use of wagering tax receipts, which would otherwise expire on
July 1, 2029.
ADMINISTRATION. The bill provides that the legislative
council is to appoint a committee to review the trust fund and
its allocations. The bill requires the economic development
authority to be involved in decisions that use trust fund
moneys to support initiatives with a recreational purpose. In
making decisions to expend trust fund moneys, a higher priority
is given to supporting an initiative that furthers a goal of
the Iowa nutrient reduction strategy. A higher priority is
provided to maintaining or preserving existing public use lands
rather than acquiring new land. Several provisions place
restrictions upon the use of trust fund moneys for support
relating to certain initiatives, including athletic fields or
facilities. Trust fund moneys cannot be used to support an
exercise of eminent domain powers.
REPEAL. Code chapter 461 is repealed December 31, 2050.
EFFECTIVE DATE. The division of the bill takes effect
January 1, 2021.
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